BENCHMARKING

BANUPRIYA.JSIVASUBRAMANIAM

SUMIYA FATHIMATHANGAPANDIYAN

UDAYA SANKARVINODINI.K.R

DEFINITIONS OF BENCHMARKING

Benchmarking is the process of comparing the cost, cycle time, productivity or quality of a specific process or method to another that is widely considered to be an industry standard or best practice.

Benchmarking is the process of continually searching for the best methods, practices and processes, and either adopting or adapting their good features and implementing them to become “best of the best.”

Benchmarking is the process of identifying, understanding and adapting outstanding practices from any organization to help the camp improve its performance and outcomes.

BENCHMARKING COMPLIANCE(CONFIRMITY)

Policy regarding benchmarking protocol should be communicated to all employees employed, prior to contacting external organizations. Guidelines should address the following areas:1. Misrepresentation.2. Information requests.3. Sensitive/proprietary

information.4. Confidentiality.5. Inappropriate communication.6. Agreements.

WHEN TO BENCHMARK

Benchmark early and often.During design

Helps make decisions about table structure, indexes, etc.,

Know early on if you have sufficient hardware.

Before launch.Anytime you’re wondering “which is

faster A or B?”

WHEN NOT TO BENCHMARK

Target is not critical to the core business functions.

Customer’s requirement is not clear.

Key stakeholders are not involved.Inadequate resources to carry

through.No plan for implementing findings.Fear of sharing information with

other organizations.

Per

form

anc

e

Expectatio

ns

Continuous Improvement

Performance Gap

Time

PERFORMANCE GAP

BENCHMARKING PROCESS

Planning

CollectingData

Analysis

ImprovingPractices

1. PLANNING

Determine the purpose and scope of the project.

Select the process to be benchmarked.

Choose the team. Define the scope. Develop a flow chart for the

process. Establish process measures. Identify benchmarking partners.

2. COLLECTING DATA

Conduct background research to gain thorough understanding on the process and partnering organizations

Use questionnaires to gather information necessary for benchmarking

Conduct site visits if additional information is needed

Conduct interviews if more detail information is needed

3. ANALYSIS

Analyze quantitative data of partnering organizations and your organization.

Analyze qualitative data of partnering organizations and your organization.

Determine the performance gap.

4. IMPROVING PRACTICES

Report findings and brief management.

Develop an improvement implementation plan.

Implement process improvements. Monitor performance

measurements and track progress. Recalibrate the process as needed.

COST OF BENCHMARKING• The three main types of costs are:

Visit costs.Time costs.Database costs.

APPROACHES TO BENCHMARKING

1. Identify the process to be benchmarked.

2. Establish management commitment to the benchmarking process.

3. Identify and establish the benchmarking team.

4. Define and understand the process to be benchmarked.

5. Identify metrics and collect process data.

1. IDENTIFY AN APPROPRIATE BENCHMARKING MODEL

The generic model is selected as the most appropriate.

The approach ensures elements crucial to customer satisfaction.

Facilitates an in depth scrutiny of the way operations are currently run.

A learning experience.Comparisons with other organizations

enable participants to exchange ideas and analyze gaps in performance.

2. PROCEDURES REPRESENTING THE APPROACH TAKEN

Identify a key process, critical to the success of the service.

Document or map the sub-process.Take measurements of factors critical to the

success of the process.Analyze the results of exercise and identify

gaps in performance.Select benchmarking partners, arrange visit

to compare the results of the exercise.Identify “best practice” e.g. methods used

by benchmarking partners for adoption to improve one’s own level of service.

3. SELECTING BENCHMARKING

PARTNERS

Most difficult aspects of benchmarking.Partners are selected from organizations.Interested in benchmarking and willing to

participate in the exercise.Not in competition with the demonstration

organization.Formal letter will be sent stating

procedures for the exercise to the partners.

Demonstration organizations will arrange for the visits at their most convenient time.

4. THE BENCHMARKING VISIT

Meeting is set up by the demonstration and the benchmarking partner.

Aim - to compare the data and exchange ideas on the process.

Meeting is informal, to be led by demonstration organizations with researchers observing.

Best practice will be identified and establish.

NECESSARY UNDERPINNINGS (SUPPORT) OF

BENCHMARKING

1. Time management.2. Communications.3. Formal vs. informal approaches.4. Confidentiality and Learning

organization.

1. TIME MANAGEMENT Consuming time might be better spent

on other task or more important matters.

To survive, libraries must give up the quick fix philosophy and understand the change is now the norm and stability is a thing of the past.

Quality management is a gradual or organic process involve cultural change and holistic approach to management.

benchmarking is time consuming process, requires planning, team work and frequent meetings.

visits to partners take up valuable work time.

viewed as a learning experience leading to a higher level of awareness and will benefit the library in the long term.

2.COMMUNICATIONS

essential for quality management initiative, lines of communications may affect location of the library, availability of channels of communication e.g. E-mail, telephone, fax et.al.

Meetings between senior management and staff involved in the exercise should be setup in advanced and reporting mechanism in place.

3. FORMAL VS. INFORMAL APPROACHES

• Formal methods are:theoretical impractical bureaucratic.

• Informal methods of evaluation may be used such as: Regular team meetings and storming sessions.Service level agreements; service standards.Student course evaluation.Liaison thru Library Advisory Committee.Course review document. Informal comparison of statistics.Participation in university wide survey.Access the board comparison with a member of

other universities.

4. CONFIDENTIALITY AND LEARNING ORGANIZATION

compare work practices and establish best practices.

areas of concern : confidentiality as a problem.

misapprehensions : information about procedures are compared and no need for confidential information to be implicated.

those who are apprehensive about showing information are not ready to participate in benchmarking.

TYPES OF BENCHMARKING

Competitive benchmarkingFunctional benchmarkingProduct benchmarkingProcess benchmarkingBest practices benchmarkingStrategic benchmarkingPerformance benchmarkingFinancial benchmarking

COMPETITIVE BENCHMARKING

Comparison of performance among direct competitors.

Uses SWOT analysis.

FUNCTIONAL BENCHMARKING

Single function benchmarking is to improve the operation if that particular function.Complex functions are directly comparable in cost and efficiency terms.

PRODUCT BENCHMARKINGProcess of designing new products or

upgrades to new ones.Comparison of processes.

PROCESS BENCHMARKING

Focuses on discrete work processes and operating systems.Identify most effective operating practices.Power lies in its ability to produce bottom-line results.

BEST PRACTICES BENCHMARKING

Don’t reinvent what others have learnt to do better!

Borrow shamelessly!Adopt, adapt, advance!Imitate creatively!Adapt innovatively!

FINANCIAL BENCHAMRKINGPerforming financial analysis.Comparing the results.

STRATEGIC BENCHMARKING

Identify winning strategies.Influences the longer term competitive

patterns of the company.

PERFORMANCE BENCHMARKING

Enable managers to assess their competitive positions.Focus on elements.Primary techniques are applied.

REASONS FOR BENCHMARKING

cost comparison.reduction in turn around times.reduction in error rates.establishing meaningful

performance indicators /realistic output measures.

feasibility of collaboration to achieve cost saving.

investigate in sourcing, outsourcing and collaborative opportunities.

establish individual performance targets.

REASONS FOR BENCHMARKING

explore appropriate roles and activities of cataloguers.

develop improved outcomes for customers.pilot benchmarking / instill value of

benchmarking.as an instrument to achieve change.develop bet practice model.validation measure.develop statements of good practice.framework for benchmarking, performance

and quality

PROBLEMS WITH BENCHMARKING

Problems with benchmarking occur where Data is not obtained for the process

being measured – and analysis becomes subjective

No peer group/best practice identified (including data available)

The gap between current state and best practice is captured but nothing is done about it

Assumed best practice isn't best practice

Benchmarking happens as a one off event and not reviewed periodically

APPLICATIONS AND BENEFITS

Improves organizational quality.Leads to lower cost positions.Creates buy-in for change.Exposes people to new ideas.Broadens the organization’s

operation perspective.Creates a culture open to new

ideas.Serves as a catalyst to learning.Tests the rigor of internal

operating targets.Creates an external business

view.

APPLICATIONS AND BENEFITS

Raises the organization’s level of maximum potential performance.

Setting and refining strategy.Reengineering work processes &

business systems.Continuous improvement of work

processes and business systems.Strategic planning and work

setting.Problem solving.Education and idea enrichment.Market performance comparisons

& evaluations.Catalyst for change.

CRITICAL SUCCESS FACTORS

Adopt, adapt & advance: a well designed performance measurement and benchmark system is essential, but there are other critical success factors: Senior management support. Benchmarking training for the project

team. Useful information technology systems. Cultural practices that encourage learning. Resource dedication-especially in the form

of time, funding and useful equipment.`

Give Benchmarking a

Chance - Its Worth It

LIBRARY PROCEDURES

SCOPE:Acquisition of Books Purchase

GENERAL POLICIES AND GUIDELINES:

Determination of the educational resources of the SHL library is a professional consideration of great magnitude, requiring the cooperative efforts of the acquisition librarian and the faculty members with the College deans and the Library director.

PROCEDURES

1. The Director of Libraries directs the Acquisition Librarian to invite book suppliers in batches and assigns staffs to attend book fairs and coordinates with the College Deans for faculty members to attend book fairs

2. The Property Officer receives books from suppliers

3. The Acquisition Librarian segregates books per college and prepares book acquisition to go with the books

4. The Faculty/Department Chair evaluates/recommends books to purchase

5. The Dean evaluates/approves the Book Requisition Slips

PROCEDURES6. The College Secretary

returns/transmits all books to Acquisition Librarian

7. The Director of Libraries re-evaluates books recommended and endorse acquisition

8. The Acquisition Librarian prepares list of books as “recommended” and “not recommended” per supplier in triplicate

9. The Acquisition Librarian transmits all books to Property Office with the duly signed Book Requisition Slip

10.The purchasing Officer prepares purchase requisition/purchase order

PROCEDURES11.The VP/Treasurer approves the

P.R./P.O.12.The Purchasing Officer sends

approved P.O. to supplier; then forward the approved P.O. to Property Officer and to Accounting for payment.

13.The Property officer returns books “not recommended” to suppliers, prepares RR for the purchased books per the approved P.O. and transmits books per approved P.O.

14.The Acquisition Librarian records all purchased books into the Accession Book

15.The Cataloger catalogues the books.

16.The Acquisition Librarian forwards the list of catalogued books to Property Office.

BOOK ACQUITION PROCEDUR

E

XEROX-12 STEP BENCHMARKING PROCESSPhase 1: Planning

1. Identify what to benchmark.2. Identify comparative

companies.3. Determine data collection

method and collect data.Phase 2: Analysis

4. Determine current performance gap.

5. Project future performance levels.

Phase 3: Integration6. Communicate finding and gain

acceptance.7. Establish functional goals.

XEROX-12 STEP BENCHMARKING PROCESS

Phase 4: Action8. Develop action plans.9. Implement specific actions &

monitor progress.10.Recalibrate benchmarks.

Phase 5: Maturity11.Attain leadership positions.12.Fully integrate practices into

processes.

THANK YOU!!!